1. 1 EXCHANGE OF INFORMATION BETWEEN LUXEMBOURG AND FOREIGN TAX ADMINISTRATIONS

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3. Historical Background 2005: international initiatives to reinforce exchange of information to avoid / prevent tax fraud 2005-2012: expansion of the scope of exchange of information 3 3

4. GENERAL PROCEDURE FORESEEN BY DOUBLE TAX TREATIES 4 Director of Luxembourg Tax Administration Administrative Tribunal Company / Bank Foreign Tax Administration Administrative decision for information request Information request regarding tax payer Option 1: Provide information within 1 month* Director of Luxembourg Tax Administration Option 2: claim within 1 month (bank or taxpayer) Examples of information requests: Bank account holder beneficial owner of bank account Administrative Court appeal procedure*fine up to EUR 250,000

5. CASE STUDY 1: Court of Appeal 24 May 2012 5 Director of Luxembourg Tax Administration Administrative Tribunal Luxembourg Bank Swedish Tax Administration Administrative decision for information request Information request regarding Malaysian Company (tax payer) Claim (by Malaysian Company) Requested information (among others): -Bank account holder -Balance of accounts -persons allowed to proceed to bank operations on account Information request approved Administrative Court Administrative Court appeal Information request denied

6. Analysis by Court of Appeal Main criteria for an information request: prohibition for a Tax Administration to proceed to « fishing expedition» Requested information must be « foreseeably relevant » Information request denied by Court: Purpose of the information request was to obtain information on other persons than the « person under investigation » 6 6

7. Latest News for exchange of information Since March 2013: Procedure for exchange of information on European level Expansion of exchange of information to several non EU countries (i.e., Canada, South Korea, Malta, Poland, Romania, Russia, Switzerland, Kazakhstan, Macedonia, Seychelles and Tadjikistan) 7 7

8. What can be expected for the future? FATCA regulation: automatic exchange of information regarding US citizens Latest EU regulation introduces « most favored nation » clause What will be Luxembourg’s position on bank secrecy / exchange of information on an international / EU Level? 8 8

9. 9 Questions ? Cédric SCHIRRER Tel: +352 45 31 13 cschirrer@wagenerlegal.lu Christophe JOOSEN Tél: +352 26 12 29 45 christophe.joosen@nautadutilh.com christophe.joosen@nautadutilh.com